With over 250pips in our direction since my last publication on this pair (see link below for reference purposes); Price experienced a Correction phase to climb back to our previous Key level @ $1.3000. Since the termination of the Impulse leg that began this month, the price has been moving sideways between $1.27000 and $1.30000. The optimism on Brexit coupled with pessimism on fiscal talks appears to be the major factor that will move/drive the GBP/USD in the following week(s). Volatility is looming on this one!
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Channel | Supply & Demand
Observation: i. Price has been on a downward spiral since the beginning of the month (October 2020) to find a Flat channel between $1.27000 and $1.30000.
ii. Price is currently at an area that has a memory of Selling action as it hovers around the Supply zone.
iii. My bias is looking forward to a Breakdown of this Channel in the future but before then I shall target the Demand zone for the first phase of profits.
iv. However, a significant Breakout of $1.30500 shall render this setup invalid for the meantime.
Trading plan: SELL confirmation with a minimum potential profit of 220 pips.
Risk/Reward: 1:4
Potential Duration: 1 to 5 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Tendency: Downtrend ( Bearish )
Structure: Breakdown | Channel | Supply & Demand
Observation: i. Price has been on a downward spiral since the beginning of the month (October 2020) to find a Flat channel between $1.27000 and $1.30000.
ii. Price is currently at an area that has a memory of Selling action as it hovers around the Supply zone.
iii. My bias is looking forward to a Breakdown of this Channel in the future but before then I shall target the Demand zone for the first phase of profits.
iv. However, a significant Breakout of $1.30500 shall render this setup invalid for the meantime.
Trading plan: SELL confirmation with a minimum potential profit of 220 pips.
Risk/Reward: 1:4
Potential Duration: 1 to 5 days
NB: This speculation can be considered to make decisions on lower timeframes.
Watch this space for updates as price action is been monitored.
Risk Disclaimer:
Margin trading in the foreign exchange market (including foreign exchange trading, CFDs, etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility.
You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment.
I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith.
Past performance is not necessarily indicative of future results.
Trade smart. Trade consciously
